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The South Delhi Municipal Corporation is planning to install an electronic toll system for vehicular entries on the borders of the national capital, citing problems in tax collection through contractors in this segment.

"The SDMC has issued tender for engaging a new contractor for a period of 9 months. During this period the civic body will also plan for installing an e-toll system at entry points on the border of Delhi," a senior municipal official said.

Following the Supreme Court's permission to the present toll tax contractor SMYR Consortium to exit after January 31, the SDMC which collects toll taxes on behalf of all the three municipal corporations in Delhi, is in the process of hiring a new contractor.

"We are deliberating over the possibility of installing an electronic toll tax collection system for which preliminary exercise has been started," the officer said.

SDMC's Standing Committee Chairman Radhey Shyam Sharma said that the civic body plans to install the e-toll system from the next year and till then a contractor will charge toll tax from vehicles on nearly 124 entry points on Delhi border with neighbouring states.

"We have decided to use technology and install a state-of-the-art e-toll system to avoid blackmailing by contractors and also to increase toll tax revenue," Sharma said.

The e-toll system involves electronic toll tax payment through Radio Frequency ID (RFID) which allows automatic deduction of toll tax from bank account. It also allows the vehicles to pay toll tax without stopping at toll plazas, the municipal official said.

"Under the system, the vehicle is automatically identified through a RFID chip embedded card as it passes through toll lane and the tax amount is automatically debited from a given account," he said.